leasehold enfranchisement

What is Leasehold Enfranchisement? | Guide & Tips

Have you ever heard of leasehold enfranchisement? If not, you’re in for a treat! This fascinating process allows leaseholders to take control of their property and potentially even become the proud owners of their own home. In this blog post, we’ll delve into the ins and outs of leasehold enfranchisement, exploring what it is, how it works, and why it could be a game-changer for you. So grab a cup of tea and get ready to learn all about this empowering opportunity!

What is Leasehold Enfranchisement?

Leasehold enfranchisement is a significant opportunity for owners of flats to gain control over their building by purchasing the freehold. Governed by the Leasehold Reform Housing & Urban Development Act 1993 (as amended), leasehold enfranchisement allows qualifying tenants to come together and collectively buy the freehold of their building. To navigate this process successfully, it is crucial to understand the eligibility criteria, seek expert advice, and follow the correct procedures.

Eligibility for Leasehold Enfranchisement

When considering leasehold enfranchisement, it is essential to understand the qualifying criteria that must be met. Eligibility is determined by several key factors:

Building Requirements

To initiate the leasehold enfranchisement process, the building must contain a minimum of two flats. Furthermore, at least two-thirds of the flats within the building must be owned by qualifying tenants.

Qualifying Tenant Lease Length

A qualifying tenant is defined as an individual who holds a lease of at least 21 years when it was initially granted. It is worth noting that special cases of qualifying tenants may include those with perpetual renewal clauses, leases terminable on death or marriage, and shared ownership leases.

Restrictions on Non-Residential Use

The building must not exceed 25% non-residential use to be eligible for leasehold enfranchisement. It is important to ensure that the usage of the building complies with this restriction.

Exclusions from Lease Extension and Collective Enfranchisement Rights

Some properties, such as cathedral precincts or National Trust properties, may be excluded from lease extension and collective enfranchisement rights. Therefore, it is essential to confirm that the building in question does not fall under these exclusions.

By meeting these qualifying criteria, leaseholders can take the necessary steps towards leasehold enfranchisement. It is crucial to consult with legal professionals who specialize in this area to ensure compliance with all requirements and a successful enfranchisement process.

leasehold enfranchisement qualifying criteria

Organizing for Leasehold Enfranchisement

Before proceeding with leasehold enfranchisement, it is important to organize a working group of participating tenants and establish a participation agreement outlining responsibilities and financial contributions. The nominee purchaser, who will acquire the freehold, should be chosen, and a company may be formed by the tenants for this purpose. Professional advisers, such as lease extension solicitors and valuers, should be appointed to assist with the process. It is also necessary to establish a cost fund to cover initial steps, including valuations and forming a company.

Forming a strong and coordinated group of participating tenants is crucial to the successful leasehold enfranchisement process. By outlining the responsibilities and financial contributions of each tenant in a participation agreement, the group can ensure transparency and accountability. This agreement will serve as a guide for all stages of the process, from the initial notice to the acquisition of the freehold.

The selection of a nominee purchaser is a significant decision. This individual or company will represent the tenants in negotiations with the landlord and will ultimately acquire the freehold. It is advisable to seek the expertise of lease extension solicitors who specialize in leasehold enfranchisement to guide the group through the legal complexities involved.

Appointing professional advisers, such as lease extension solicitors and valuers, is essential for accurate valuations and expert advice throughout the process. Lease extension solicitors are experienced in navigating leasehold legislation and can ensure that the group’s rights are protected. Valuers will provide an unbiased assessment of the premium to be paid for the freehold, considering factors such as the property’s location, condition, and market value.

Establishing a cost fund is necessary to cover the expenses incurred during the initial stages of leasehold enfranchisement. This includes valuations, legal fees, and the formation of a company if required. Each participating tenant should contribute a fair and proportionate amount to the fund to ensure sufficient funds are available to progress the process smoothly.


To effectively organize for leasehold enfranchisement, tenants should:

  • Form a working group and establish a participation agreement
  • Select a nominee purchaser
  • Appoint lease extension solicitors and valuers
  • Establish a cost fund to cover initial expenses

By following these steps, tenants can navigate the leasehold enfranchisement process with confidence and increase their chances of a successful outcome.

leasehold enfranchisement process

The Leasehold Enfranchisement Process

The leasehold enfranchisement process involves several key steps that leaseholders need to follow to successfully acquire the freehold of their building. Understanding these steps is crucial for a smooth and effective enfranchisement process. Let’s take a closer look at each stage:

1. Checking Eligibility

Prior to initiating the leasehold enfranchisement process, it is essential to ensure that your building meets the necessary criteria for eligibility. This includes verifying the number of flats in the building, the percentage of flats owned by qualifying tenants, and the non-residential usage limit of the building.

2. Serving the Initial Notice

Once eligibility is confirmed, participating tenants must serve an initial notice to the freeholder, expressing their intention to acquire the freehold. This notice outlines the tenants’ desire to enfranchise, sets out the terms of the proposed acquisition, and initiates the valuation process.

3. Valuing the Freehold

Valuation plays a crucial role in the leasehold enfranchisement process as it determines the premium that participating tenants need to pay to the freeholder. The valuation takes into account factors such as the market value of the freehold, the length of the remaining lease terms, and any potential development value. Negotiations may be required with the landlord to reach an agreeable valuation figure.

4. Leasehold Valuation Tribunal

If an agreement cannot be reached between the participating tenants and the landlord regarding the freehold valuation, the leasehold valuation tribunal may become involved. The tribunal has the authority to make binding decisions on matters related to enfranchisement valuation, ensuring a fair resolution for both parties.

5. Complying with Deadlines and Information Requests

To ensure a successful enfranchisement process, it is crucial to comply with all deadlines specified in the legislation and provide all necessary information requested by the freeholder. Keeping track of important dates and promptly responding to information requests will help to avoid any unnecessary delays or complications.

By following these steps and seeking expert guidance from qualified professionals such as solicitors and surveyors, leaseholders can navigate the leasehold enfranchisement process smoothly and secure the freehold ownership of their building.


Leasehold enfranchisement offers a valuable opportunity for flat owners to gain control over their building by purchasing the freehold. By following the correct procedures and seeking expert advice, leaseholders can navigate the process of eligibility assessment, forming a working group, selecting a nominee purchaser, and engaging professional advisers. The cost involved in leasehold enfranchisement varies based on factors such as the premium payable to the landlord. However, the benefits of this process include increased control over the property and the potential to extend lease terms.

With a leasehold enfranchisement, owners can break free from the limitations of a lease and opt for a freehold purchase, granting them ownership of the land and building. This not only provides stability and security but also removes the need for lease extensions or collective enfranchisement in the future. By taking advantage of the leasehold enfranchisement act, leaseholders can ensure a smoother transition from leasehold to freehold ownership, allowing them to fully enjoy their properties and make decisions that best suit their needs.

Remember, leasehold enfranchisement is a legal process that requires careful consideration and expert guidance. By discussing your options with professionals who specialize in leasehold enfranchisement, you can make informed decisions and proceed confidently. Take control of your property and explore the possibilities of leasehold enfranchisement today.


How do I organize for leasehold enfranchisement?

To organize for leasehold enfranchisement, it is important to establish a working group of participating tenants, choose a nominee purchaser, appoint professional advisers, and establish a cost fund to cover initial steps and expenses.

What are the benefits of leasehold enfranchisement?

Leasehold enfranchisement provides owners of flats with the opportunity to take control of their building by buying the freehold. This can increase their control over the property and potentially increase the term of their leases.


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